BANK OF Ireland said in its annual Wealth of the Nation report last July that there were an estimated 33,000 millionaires in Ireland.
The Irish division of South African bank Investec, with DKM Economic Consultants, took a closer look at the Irish wealth market last week and concluded in a report published on Wednesday that there were more than 450 individuals in Ireland with more than €10 million each in assets, excluding their primary homes.
Describing the 450 individuals as Ireland’s “new super rich” or ultra high net worth individuals, Investec said the richest 100 were worth more than €100 million each.
Only 1 per cent of the new wealth was inherited, compared to 18 per cent for the global super rich. However, Investec found that the Irish super rich differ because they are largely self-made.
The report, prepared by DKM, was published to mark the launch of a new consulting service by Investec to target the 450 wealthiest individuals with investment opportunities. DKM concluded that wealthy Irish investors have underperformed their international peers due to the overconcentration of their investments in property and Irish equities.
The report found that €41 billion was realised by Irish investors and companies from land, property and equities in the three years to 2007 and that a “quiet wealth” worth about €11 billion had been generated by farmers and landowners from the sale of agriculture land for property and roads.
Three in every four top Irish chief executives were found to be more favourable towards keeping cash on deposit than 12 months ago due to the financial turmoil, the report said. This reflects a wider trend in the market where investors are holding on to large cash deposits and waiting for the market to “bottom out”.
Dublin investment management firm Global Reach Securities, which manages more than €500 million in funds, yesterday called the bottom of the international market, saying the “bear” cycle had ended, with the rescue of US investment bank Bear Stearns marking the nadir of the market.
“While we’re over the worst of the bear run in Ireland too, a recovery in Irish share values is going to be both slower in coming and less marked in scale than will be seen in the US, the UK or elsewhere in the euro zone,” said David Tease, head of asset management at Global Reach Securities.
SIMON CARSWELL
